When I go through my charts, I see all kinds of different trends, patterns and consolidations around the world. It really depends on what I'm looking at. However, one area that has been a consistent outperformer is in Medical Device stocks. The way I see it, these are just Tech stocks stuck in the bodies of Healthcare names. So our theme of "bullish tech" makes sense, even though on paper they're Healthcare stocks.
Here is a chart of the Medical Device & Equipment Index $IHI relative to the S&P500. This one goes from the lower left to the upper right. We call those Uptrends:
When I speak to traders at buy side shops, I've noticed that when it's time to allocate more money into the market, they tend to add to things that have made them feel good and shy away from those that have brought them pain. This is one area where I believe traders will be adding, and not diversifying away from.
Here is a list of stocks we want to be buying or looking to buy on a pullback:
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